Hercules Capital Completes $200.0 Million Securitization

Company Release - 11/1/2018 12:51 PM ET

Issued $200.0 million of class A notes rated A(sf) by KBRA

Strengthens balance sheet and enhances liquidity

PALO ALTO, Calif.--(BUSINESS WIRE)--
Hercules Capital, Inc. (NYSE: HTGC) (“Hercules” or the “Company”) today
announced that Hercules Capital Funding Trust 2018-1, a newly-formed
wholly owned subsidiary of Hercules, has issued $200.0 million of class
A notes (the “Notes”) rated A(sf) by Kroll Bond Rating Agency, Inc.
(“KBRA”) backed by approximately $286.0 million of senior secured loans.
Guggenheim Securities, LLC acted as arranger of the Notes, and Hercules
is the sponsor, originator and servicer for the transaction. The Notes
bear interest at a fixed rate of 4.605%. The Notes have a stated
maturity date of November 22, 2027 and an expected weighted average life
of 3.45 years.

“I am pleased with the exceptionally strong support this transaction
received from institutional investors, which is a testament to our
proven business model and our strong and diverse asset base,” said
Manuel A. Henriquez, chairman and chief executive officer of Hercules.
“This transaction reflects Hercules’ continued success in diversifying
its capital structure. Year-to-date, Hercules has raised approximately
$458.0 million of new debt and equity capital to fund portfolio growth.
The proceeds will expand our sources of capital and provide additional
long-term financing to help accelerate growth in our investment
portfolio and deliver increased earnings in 2018 and beyond.”

About Hercules Capital, Inc.

Hercules Capital, Inc. (NYSE: HTGC) (“Hercules”) is the leading and
largest specialty finance company focused on providing senior secured
venture growth loans to high-growth, innovative venture capital-backed
companies in a broad variety of technology, life sciences and
sustainable and renewable technology industries. Since inception
(December 2003), Hercules has committed more than $8.2 billion to over
440 companies and is the lender of choice for entrepreneurs and venture
capital firms seeking growth capital financing. Companies interested in
learning more about financing opportunities should contact info@htgc.com,
or call 650.289.3060.

Hercules’ common stock trades on the New York Stock Exchange (NYSE)
under the ticker symbol "HTGC." In addition, Hercules has five
outstanding bond issuances of 6.25% Notes due 2024 (NYSE: HTGX), 4.375%
Convertible Notes due 2022, 4.625% Notes due 2022, 5.25% Notes due 2025
(NYSE: HCXZ) and 6.25% Notes due 2033 (NYSE: HCXY).

Forward-Looking Statements

This press release may contain “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995. You
should understand that under Section 27A(b)(2)(B) of the Securities Act
of 1933, as amended, and Section 21E(b)(2)(B) of the Securities Exchange
Act of 1934, as amended, or the Exchange Act, the “safe harbor”
provisions of the Private Securities Litigation Reform Act of 1995 do
not apply to forward-looking statements made in periodic reports we file
under the Exchange Act.

The information disclosed in this press release is made as of the date
hereof and reflects Hercules most current assessment of its historical
financial performance. Actual financial results filed with the SEC may
differ from those contained herein due to timing delays between the date
of this release and confirmation of final audit results. These
forward-looking statements are not guarantees of future performance and
are subject to uncertainties and other factors that could cause actual
results to differ materially from those expressed in the forward-looking
statements including, without limitation, the risks, uncertainties,
including the uncertainties surrounding the current market volatility,
and other factors the Company identifies from time to time in its
filings with the SEC. Although Hercules believes that the assumptions on
which these forward-looking statements are based are reasonable, any of
those assumptions could prove to be inaccurate and, as a result, the
forward-looking statements based on those assumptions also could be
incorrect. You should not place undue reliance on these forward-looking
statements. The forward-looking statements contained in this release are
made as of the date hereof, and Hercules assumes no obligation to update
the forward-looking statements for subsequent events.